International Shipping Hub Boosts Ohio's Logistics Industry
Intermodal cargo terminal expands state's worldwide business reach
Ohio expanded its global reach in the logistics industry with the dedication of Norfolk Southern Corp.’s new intermodal cargo terminal near Rickenbacker International Airport on March 10, 2008. The terminal is the next big step forward in dramatically increasing capacity of the international shipping business in Ohio, according to the Ohio Business Development Coalition (OBDC), the nonprofit organization that markets the state for capital investment.
The expansion of the state’s logistics industry will meet the increasing demands of new businesses locating in Ohio, allowing them to more easily reach a worldwide audience and profitably compete in a 21st century global economy. Coupled with recent tort and tax reform, the expansion of Ohio’s logistics industry is just the latest example of how the state is proactively improving its business climate, while providing a better quality of life for Ohio workers.
Norfolk Southern’s $68.5 million investment in the new international shipping facility will open with capacity for 250,000 cargo container transfers from train to truck a year and can be expanded to move 400,000 cargo transfers annually. According to an independent study, within 10 years the new intermodal facility will generate $660 million in transportation cost savings to shippers, and over the next 30 years, will generate 9,500 direct jobs and 10,900 indirect jobs.
“Growth in rail capacity is a key driver of enhanced distribution solutions, and Rickenbacker is about to increase truck to train lift capacity by almost 400 percent,” said Jolene Molitoris, chairwoman of the Ohio Rail Development Commission. “The synergy of Ohio’s location advantage to 60 percent of Americans and 50 percent of Canadians within 600 miles in conjunction with improved rail and international shipping access in the center of the state is definitely a boon for our logistics industry. In conjunction with the additional air cargo capabilities, the sky is the limit for increased distribution of goods in Central Ohio and throughout the rest of the state.”
Norfolk Southern’s Heartland Corridor initiative, a $250 million project supported by federal and state government funding including Ohio, is improving rail infrastructure and logistics from Norfolk to Chicago, increasing the height of bridges and tunnels to provide direct access for double-stacked cargo containers. The project is scheduled for completion in late 2009-early 2010. In conjunction with the dredging of the Port of Virginia to accommodate the biggest modern cargo ships, Ohio is poised to become a crucial link on an international shipping distribution chain for global goods via Atlantic Ocean shipping.
According to the Ohio Business Development Coalition, many of the qualities that make Ohio an ideal center for a thriving logistics industry are mirrored in opportunities for everyday life for residents throughout the state.
“A thriving logistics industry is all about access, and Ohio not only provides access to the rest of the country, but also to a world-class lifestyle where executives are able to successfully grow a business and still enjoy life,” said Ed Burghard, executive director of the Ohio Business Development Coalition (OBDC). “Business owners profit from the bottom-line benefits of better work:life balance for their employees. Ohio offers low-cost, low stress communities in a combina